The National Revenue Council will launch a new online tax filing system on September 1 for individual taxpayers.
Taxpayers will be able to file their tax returns online from the current fiscal year 2020-2021 by browsing the NBR website, even on their mobile devices.
The income tax wing of the NBR completed the User Acceptance Test and the Internet Test in June and found it passed.
Income tax officials developed the artificial intelligence-based system after its previous project failed to trick taxpayers into filing tax returns online.
Earlier in November 2016, the tax administration launched an electronic filing system developed by the Vietnamese company FPT as part of the Bangladesh Integrated Tax Administration System (BiTax).
But only 21,104 taxpayers filed their tax returns online in the five fiscal years between fiscal year 2016 and fiscal year 2020.
Of these, a total of 7,209 taxpayers, or 0.33% of the total 22 lakh returns, filed their tax returns online in fiscal year 2020.
Officials said they developed the local system because BiTax developed with financial support from the Asian Development Bank was not working.
They said a 13-member team made up of NBR income tax and ICT officials developed the system, addressing shortcomings taxpayers faced in using the previous system.
Individual taxpayers will be able to obtain their tax certificate, receipts and tax identification number at any time from their account in the system.
Taxpayers will need to register them on the website using their mobile phone number registered with the Bangladesh Telecommunications Regulatory Commission.
The online system will verify the authenticity of taxpayers using the BTRC’s biometric database and provide username and password.
A senior NBR official said taxpayers would be able to file their tax returns very easily with their cell phones.
Certain groups of taxpayers, including government employees, who have no income other than their salary, and taxpayers with no income will be able to file their tax returns with just a few fingers on their cellphones, he said. declared.
He said the software was developed with an application program interface, keeping the system interconnected with other entities including banks, the Bangladesh Road Transport Authority and the Bangladesh Computer Council.
The API system will insert relevant information from other entities using a taxpayer’s national identifier and TIN, he added.
Once interconnectivity has been developed with all commercial banks, the system will automatically adjust the withholding tax on bank interest.
Marginal taxpayers will not need to upload any documents including bank statements, savings certificates, into the system as the system will extract the documents as needed.
Salary statements for government employees will be automatically retrieved by the Ministry of Finance’s IBAS system.
A significant portion of taxpayers will be able to file their tax returns online this year using the system, the official said.
Currently, there are a total of 62.49 lakh taxpayers registered in the country.
But only 24 lakh taxpayers filed their tax returns manually in fiscal year 2020.
Currently, some 52.41 percent of TIN holders do not file their income tax returns despite a mandatory provision in the Income Tax Ordinance 1984.